The US Sector and Basic ETF Portfolios have been updated for October. Both portfolios have no turnover from last month, below is a brief review:
US Sector Momentum – The US Sector Momentum Portfolio continues to hold Health Care Select Sector SPDR (XLV) based on 6-month price momentum.
Year-to-date the strategy is up 3.77%. For background on this strategy click here.
The table below shows various momentum metrics for sector ETFs:
|Symbol||Name||Quarterly||6 Month||Year||Average||200 Day SMA|
|XLB||Materials Select Sector SPDR||4.81%||0.60%||23.32%||9.58%||4.04%|
|XLE||Energy Select Sector SPDR||11.15%||3.30%||23.96%||12.80%||5.78%|
|XLF||Financial Select Sector SPDR||6.93%||-0.45%||29.70%||12.06%||7.21%|
|XLI||Industrial Select Sector SPDR||3.08%||-1.27%||23.58%||8.46%||2.62%|
|XLK||Technology Select Sector SPDR||7.74%||3.02%||29.30%||13.35%||8.09%|
|XLP||Consumer Staples Select Sector SPDR||3.75%||6.59%||22.94%||11.09%||6.73%|
|XLU||Utilities Select Sector SPDR||-0.57%||5.94%||10.41%||5.26%||3.20%|
|XLV||Health Care Select Sector SPDR||6.08%||7.79%||27.49%||13.79%||9.29%|
|XLY||Consumer Discret Select Sector SPDR||7.24%||4.51%||32.47%||14.74%||8.28%|
Basic ETF Portfolio – The Basic ETF Portfolio went several months without turnover, holding Vanguard Total Stock Market ETF (VTI), Vanguard REIT Index ETF (VNQ), and Vanguard Total Bond Market ETF (BND) until las month. However, for September the strategy rules called for a sale of BND at a gain of 1.5% (excluding dividends). The proceeds were used to purchase 119 shares of DBC which based on the portfolio’s momentum rules is tied with VEU for third place this month. The tie will be granted to the existing position, thus, there is no turnover this month.
Below is a table showing the various momentum metrics for the five available ETFs in the Basic Portfolio. For strategy background, click here.
|Symbol||Name||Quarterly||Half Year||Year||Average||200 Day SMA|
|BND||Vanguard Total Bond Market ETF||1.57%||3.73%||4.81%||3.37%||2.31%|
|DBC||PowerShares DB Commodity Index Tracking||11.38%||-0.42%||7.54%||6.17%||3.91%|
|VEU||Vanguard FTSE All-World ex-US ETF||6.73%||-1.08%||12.87%||6.17%||4.30%|
|VNQ||Vanguard REIT Index ETF||0.09%||3.73%||28.78%||10.87%||4.17%|
|VTI||Vanguard Total Stock Market ETF||6.19%||2.94%||26.94%||12.02%||6.66%|
Total portfolio gain to date is 3.78% including dividends.